Oil rates increase on recent US data
(MENAFN) Oil prices rose again on Thursday as investors reacted to new US inventory data and ongoing instability in the Middle East. Brent crude, the global benchmark, edged up by 0.2% to $67 per barrel, while US West Texas Intermediate (WTI) crude increased 0.3% to reach $65.
The gains followed a nearly 1% jump on Wednesday, which helped offset early-week losses. Brent closed at around $68, and WTI remained above $65. Earlier in the week, prices had spiked over fears of supply disruptions from the Middle East, but fell back once Israel and Iran agreed to a ceasefire.
US President Donald Trump announced that nuclear negotiations with Iran are expected to begin next week. Speaking after the NATO summit, he hinted at possible sanctions relief that could allow Iran to resume oil exports—potentially to countries like China—as a way to help stabilize the Iranian economy.
Meanwhile, the US Energy Information Administration reported a larger-than-expected drop in crude oil inventories, with a 5.8 million-barrel decline to 415.1 million barrels in the week ending June 20. Analysts had anticipated a much smaller draw of around 797,000 barrels. Gasoline inventories also decreased by 2.1 million barrels, with demand hitting its highest level since December 2021.
Analysts say the price recovery is being driven by a renewed focus on supply and demand fundamentals, despite ongoing uncertainty about the durability of the Iran-Israel truce and future production decisions from OPEC+.
Rosneft CEO Igor Sechin noted last week that OPEC+ may bring forward its planned production increases by about a year. Speaking at the St. Petersburg International Economic Forum, he described the move as a strategic response to geopolitical risks and rising consumer demand.
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